Contract signing expected during Chinese President's visit (250 words)

Published: 7/9/2001

Reports are emerging that the Chinese will sign orders for Tu-204s and Tu-214 when the Chinese President visits Moscow on the 18th of July. Reports in the middle of June suggested that the Chinese had potential interest in between 10-30 Tu-204s, stimulated by the desire on the part of the Chinese authorities to lessen its dependence on US and European aircraft and probably helped by the terms being offered by the Russians. According to press reports the CAAC has already told four airlines including Xinjiang based China Northwest Airlines that they will be operating the aircraft. Intriguingly the development occurs at a time when China has recently ended its relationship with the Tu-154, the Tu-204's predecessor, with the sale of the last five aircraft operated by Xinjiang's China Northwest Airlines, where the aircraft began its Chinese service in 1985, to Ukrainian carriers in March 2001.After other operators such as China Southwest Airlines had already replaced the aircraft with Boeings and Airbuses. The final sales however, come after a chequered safety record for the Tu-154 in China, with two major crashes since the aircraft started operating in China in 1985. The latest crash with the loss of 61 people in in Shanxi Province in 1999, has been credited with making the Chinese authorities up till now, very cautious of new Russian civil aerospace products. Although according to local sources, fuel economy and the increasing difficulty in obtaining parts were the principle reason for the aircraft's withdrawal from service. .

Article ID: 2633